US electric vehicle and energy technology company Tesla has been granted a licence to supply electricity to homes and businesses across Great Britain, Reuters reported. The approval, issued to Tesla Energy Ventures Limited by regulator Ofgem, took effect on 11 March 2026 and covers England, Scotland, and Wales.

Reuters reported that the licence followed a seven-month application and assessment process that began in July 2025, conducted under the Electricity Act 1989 by the Gas and Electricity Markets Authority.

As a licensed supplier, Tesla Energy Ventures must comply with all standard UK electricity market conditions, including consumer protection, billing transparency, financial resilience, and fair treatment obligations, with Ofgem maintaining ongoing regulatory oversight.

The approval positions Tesla to replicate its Texas-based Tesla Electric model in Britain, where customers with Powerwalls can earn credits by exporting stored energy back to the grid, and EV owners can charge at off-peak rates. Tesla already sells Powerwalls, solar technology, and EV chargers in the UK, giving it an existing customer base ahead of any retail launch.

The licence covers electricity supply only. Tesla has not applied for a dual-fuel licence, meaning it will not initially offer gas alongside electricity, a bundle common among established UK suppliers such as Octopus Energy, British Gas, and EDF.

Adam Bell, director of policy at consultancy Stonehaven and former head of energy at the Department for Business, Energy and Industrial Strategy, said: "Tesla is entering a heavily regulated market in which margins have been squeezed to the narrowest possible extent and in which it faces competitors who have already invested in novel tariff offers."

Access the full Reuters report on Tesla's UK electricity supply licence approval.